% of time when the STI is cheaper based on P/E: 56.49%
% of time when the STI is cheaper based on P/B: 13.62%

Comments

The P/E and P/B ratios are still telling conflicting stories about the index. Based on P/B, the STI is almost 1SD below it's mean. The STI does not look significantly cheap nor expensive by any historical measure. Valuation-wise, it seems to be getting cheaper since peaking in July 2014, which was actually a peak for many many indicators globally.

Considering how the index has not pulled back substantially yet, I am still waiting for an opportunity to enter long positions. Still no rush. Zen mode.

*Straits Times Index values from Yahoo Finance** P/E and P/B Ratios from SPDR STI as a proxy***Data Series 2008 - 2014 from Bloomberg****Data Series 2014 onwards from SPDR STI as a proxy*****Probability calculated with http://stattrek.com/online-calculator/normal.aspx

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